IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42107.html
   My bibliography  Save this paper

The Social Costs of Monopoly: A Survey And An Evaluation

Author

Listed:
  • Gumus, Erdal

Abstract

Existence of monopoly and its costs to societies have been intensely studied. However, there has been no clear view obtained yet. Studies of rentseeking approach of the public choice school even make the issue more interesting. This paper surveys from traditional Harberger’s triangle approach of social costs of monopoly to the most recent studies and drive some conclusions from it.

Suggested Citation

  • Gumus, Erdal, 2006. "The Social Costs of Monopoly: A Survey And An Evaluation," MPRA Paper 42107, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42107
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42107/1/MPRA_paper_42107.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Klaus Stegemann, 1984. "The Social Costs of Monopoly in an Open Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 718-730, November.
    2. Young, David P. T., 1997. "Dominant firms, price leadership and the measurement of monopoly welfare losses," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 533-533, August.
    3. Keem, Jung Hoon, 2001. "The social cost of monopoly when consumers resist," European Journal of Political Economy, Elsevier, vol. 17(3), pages 633-639, September.
    4. Browning, Edgar K., 1997. "A neglected welfare cost of monopoly--and most other product market distortions," Journal of Public Economics, Elsevier, vol. 66(1), pages 127-144, October.
    5. Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-827, August.
    6. Bergson, Abram, 1973. "On Monopoly Welfare Losses," American Economic Review, American Economic Association, vol. 63(5), pages 853-870, December.
    7. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
    8. Cowling, Keith & Mueller, Dennis C, 1978. "The Social Costs of Monopoly Power," Economic Journal, Royal Economic Society, vol. 88(352), pages 727-748, December.
    9. Ralph C. Epstein & Florence M. Clark, 1934. "Industrial Profits in the United States," NBER Books, National Bureau of Economic Research, Inc, number epst34-1, July.
    10. Siegfried, John J & Tiemann, Thomas K, 1974. "The Welfare Cost of Monopoly: An Inter-Industry Analysis," Economic Inquiry, Western Economic Association International, vol. 12(2), pages 190-202, June.
    11. Wenders, John T, 1987. "On Perfect Rent Dissipation," American Economic Review, American Economic Association, vol. 77(3), pages 456-459, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shuntian Yao & Lydia L. Gan, 2006. "The Welfare Effects of Monopoly Innovation," Economic Growth Centre Working Paper Series 0609, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    2. Hunt, Shelby D. & Duhan, Dale F., 2002. "Competition in the third millennium: efficiency or effectiveness?," Journal of Business Research, Elsevier, vol. 55(2), pages 97-102, February.
    3. Manfred Neumann, 1999. "Monopoly Welfare Losses in the Long Run," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(1), pages 1-9, March.
    4. Young, David P. T., 1997. "Dominant firms, price leadership and the measurement of monopoly welfare losses," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 533-533, August.
    5. Yao, Shuntian & Gan, Lydia, 2010. "Monopoly innovation and welfare effects," Economics Discussion Papers 2010-10, Kiel Institute for the World Economy (IfW Kiel).
    6. Pedro Ferreira, 2017. "Welfare Changes in the Cournot Setting with an Empirical Application to the Telecommunications Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 65(1), pages 194-213, March.
    7. Douglas Davis & Robert Reilly, 1998. "Do too many cooks always spoil the stew? An experimental analysis of rent-seeking and the role of a strategic buyer," Public Choice, Springer, vol. 95(1), pages 89-115, April.
    8. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Where are the rent seekers?," Constitutional Political Economy, Springer, vol. 27(2), pages 124-141, June.
    9. Robert A. Ritz, 2014. "On Welfare Losses Due to Imperfect Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 62(1), pages 167-190, March.
    10. David P. Myatt, 2005. "Instant Exit from the Asymmetric War of Attrition," Economics Series Working Papers 160, University of Oxford, Department of Economics.
    11. Richard B. Coffman, 1993. "Tax Abatements and Rent-seeking," Urban Studies, Urban Studies Journal Limited, vol. 30(3), pages 593-598, April.
    12. Coggins, Jay S., 1992. "Rent Dissipation and the Social Cost of Price Policy," Staff Papers 200551, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    13. Kang, Jae Hyeong & Lee, Sanghack, 2001. "The social cost of entry contest in Cournot-Nash oligopoly," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 139-152.
    14. Paul Aligica & Vlad Tarko, 2012. "State capitalism and the rent-seeking conjecture," Constitutional Political Economy, Springer, vol. 23(4), pages 357-379, December.
    15. Rowley, Charles K., 2000. "Political culture and economic performance in sub-Saharan Africa," European Journal of Political Economy, Elsevier, vol. 16(1), pages 133-158, March.
    16. Gil S. Epstein & Shmuel Nitzan, 2003. "Political culture and monopoly price determination," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 21(1), pages 1-19, August.
    17. ISKAKOV, Mikhail & ISKAKOV, Alexey & ZAKHAROV, Alexey, 2014. "Equilibria in secure strategies in the Tullock contest," LIDAM Discussion Papers CORE 2014010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Ian W.H. Parry & Roberton C. Williams III & Lawrence H. Goulder, 2002. "When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 25, pages 471-503, Edward Elgar Publishing.
    19. Karl Aiginger & Michael Pfaffermayr, 1999. "Product Quality, Cost Asymmetry and the Welfare Loss of Oligopoly," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(2), pages 165-180.
    20. Roger D. Congleton, 2019. "On the emergence of a classic work: a short history of the impact of Gordon Tullock’s Welfare Costs of Tariffs, Monopolies, and Theft," Public Choice, Springer, vol. 181(1), pages 5-12, October.

    More about this item

    Keywords

    Social costs of monopoly; Harberger’s triangle; Rent-seeking theory;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.